Yup, there are strict regulations with regard to gambling because of its addictive nature and, let's not kid ourselves, loot boxes are an uncomfortably close analogue of gambling. I would be very much okay with putting lootbox, particularly gacha games, under similar heavy regulation.

This includes hard drugs (smoking and alcohol get a pass primarily due to a pre-existing legacy userbase and industry, but they wouldn't even sort of get that today, anywhere, in a fresh slate, especially nicotine), unsafe practices on the road (such as not wearing a seat belt), and indeed porn where consent is not explicit and informed (revenge porn and child abuse).

And you'll note a lot of economic practices are banned in the Land Of The Free(tm), Ponzi schemes being a good example. Is this unreasonable? If you're a libertarian you might argue it is, but most people think it's a perfectly fine thing to ban.

Not saying you're wrong (although I personally would like to see some of the more exploitative practices in the games industry banned), but you are way off.